Reference no: EM133608914

Question: "Post Office's challenges After a court application by Bay City Trading 457, the property company owed a large amount of rent (allegedly R273 368) by the Post Office, the Pretoria high court on 23 March placed it in provisional liquidation. This ruling resulted from financial difficulties that persisted for more than a decade at the state-owned enterprise. The SOE's liabilities exceed its assets by R4 billion, and its debt totals R8 billion. These financial difficulties have resulted in monies owed to creditors and workers, Unemployment Insurance Fund contributions for workers and retrenchments, among other things. (continued) In 2021, the auditor general found the Post Office to be commercially and technically insolvent. For the financial statements for 2021-22, the auditor general stated that it was unable to gather enough audit evidence that would have served as a foundation for an audit opinion. As such, the auditor general's office could not give an audit opinion. In dealing with the leadership problems prevalent at the state-owned entity, the Post Office of Tomorrow would have to be given clear performance indicators allowing the relevant institutions to monitor and evaluate it. According to the Financial Mail, the Post Office has "guzzled R8.4bn in taxpayer bailouts